NSB records massive Rs. 3.5 b profit

BANK PROFITS: The National Savings Bank (NSB) recorded a pre-tax profit of Rs. 3.5 billion and garnered unprecedented clientele of 15.1 million. The Bank’s deposit base increased to Rs. 212.23 billion and its loans and investment portfolio stood at Rs. 224.64 billion as at December 31, its Chairman Upali Gunaratne said.

“The Bank’s contribution to the Treasury amounted to Rs. 3.57 billion. Bank’s housing loans portfolio increased to over Rs. 16 billion and disbursements during the Year were double the amount disbursed during the previous financial year,” Gunaratne told at a media conference to announce the release of its Annual Report - 2006.

He said that during the past year, the Bank took many initiatives to change itself from a traditional bank into a modern customer oriented retail bank. One such initiative is to provide a Total Retail Banking Solution to customers, NSB Chairman said.

In 2006, the Bank tied up with ICICI, India’s second largest bank and leader in the remittance market to facilitate remittances of Sri Lankan migrant workers to their families, he said. For the fourth year running Fitch Ratings Lanka Limited bestowed the AAA (lka) rating on the Bank, the only Sri Lankan financial institution in this category.

The bank also commenced installation of ATMs throughout the country and at the end of the year 2006, 40 united were installed in selected areas. At the end of the year, the bank hopes to establish an islandwide ATM network of 110 units.

NSB General Manager S.H. Piyasiri said their 15.1 million account holders and 4,440 service points provide a unique edge that no other financial institution can match. Further, the Bank’s income grew by 14.97 per cent to reach Rs. 24.39 billion.

Of this, interest income on loans and advance climbed 38.94 per cent to Rs. 3.75 billion.

He said the Bank’s contribution to Government coffers last year was a staggering Rs. 3.57 billion. This included Rs. 1.57 billion by way of income tax; Rs. 1 billion to the consolidated fund and further Rs. 1 billion by way of Value Added Tax, he said.

The Bank mobilised deposits worth almost Rs. 9.81 billion in 2006 despite the comparatively low interest rates and intense competition from other banks. The amount mobilised in 2005 was Rs. 22.26 billion.

The total deposit base of the bank stood at Rs. 212.23 billion at the end of 2006.

He said that the Bank’s NRFC Account is now well established and approximately 2,000 new NRFC account with total account balances of US$ 2.1 million and Euros 0.5 million were mobilised during the year.

(H.H.S.)